Craig Mailman's questions to Macerich Co (MAC) leadership • Q3 2024
Question
Craig Mailman from Citigroup Inc. questioned how CapEx is trending relative to the strategic plan's expectations. He also followed up on the use of equity, asking for insight into recouping potential NAV dilution from the recent issuance and how the company thinks about equity as a funding source going forward.
Answer
Senior Executive Vice President and CFO Scott Kingsmore stated that CapEx trends are not substantively different from expectations and that the amount of large, uncommitted anchor space is narrowing. President and CEO Jackson Hsieh addressed the equity question by noting the attractive 6.8% cap rate for the Washington Square and Los Cerritos acquisitions. He believes any initial NAV dilution will be offset by consolidating high-growth assets and unlocking value through redevelopment and refinancing, adding that the company will reload its ATM facility but has no immediate pressure to issue equity.